Final Results - Year Ended 31 March 2000
DCC PLC
15 May 2000
DCC plc
Results for the Year ended 31 March 2000
Euro
Turnover - continuing activities 1,316.1 m Up 55.3%
Operating profit - continuing activities 73.8 m Up 27.4%
Profit before net exceptional gains,
goodwill amortisation and tax 71.3 m Up 20.5%
Profit before tax 139.2 m
Operating cash flow 96.3 m Up 47.0%
Adjusted earnings per share* 68.8 cent Up 20.3%
Dividend per share 17.6 cent Up 20.1%
Dividend cover: 3.9 times (1999: 3.9)
Net cash at 31 March 2000: Euro 89.2 million (1999: net debt of Euro 20.3
million)
Return on capital employed - excluding goodwill: 39.5% (1999: 36.3%)
- including goodwill: 21.5% (1999: 21.2%)
* adjusted to exclude the effects of net exceptional gains and goodwill
amortisation
Jim Flavin, DCC's Chief Executive & Deputy Chairman, said today:
'DCC's core competence is in adding value in the marketing and distribution
of its own and third party branded products. The Group's focused sales teams,
market knowledge and distribution reach drive strong earnings growth,
excellent operating cash flows and increasing returns on capital employed.
DCC operates in growth markets and is immensely strong financially. We are
well positioned to go on delivering good growth in the years ahead.'
For further reference, please contact:
Jim Flavin, Chief Executive & Deputy Chairman Tel: +353-1-283 1011
Fergal O'Dwyer, Chief Financial Officer
Michael Scholefield, Group Secretary/Investor Relations Manager
Results
DCC's continued emphasis on organic growth together with the contribution for
a full year from the successful acquisitions undertaken in the previous
financial year were the key drivers behind another year of strong earnings
growth, excellent operating cash flows and increased returns on capital
employed.
Continuing Activities: Turnover increased by 55.3% to Euro 1,316.1 million
and operating profit before goodwill amortisation increased by 27.4% to Euro
73.8 million as set out below:-
2000 1999
Euro 'm Euro 'm %
Value Added Marketing & Distribution:
IT (SerCom Distribution) 20.5 15.0 +36.6%
Energy 20.0 18.2 +10.1%
Healthcare 16.0 9.8 +63.1%
Food 8.9 7.1 +25.0%
65.4 50.1 +30.5%
Supply Chain Management Services
(SerCom Solutions) 3.8 5.4 -29.7%
Other Interests 4.6 2.4 +93.6%
Total 73.8 57.9 +27.4%
The Group's operating margin reduced from 6.8% to 5.6%. The following is an
overview of the principal reasons for the change:
2000 1999
Energy margin 5.4% 9.4%
IT Distribution margin 3.8% 4.2%
Group margin excluding Energy and IT Distribution 8.2% 8.3%
In the year Energy turnover increased substantially (91.3%) due to both
rising oil prices and volume growth. However because the energy industry
operates on a contribution per litre basis rather than on a percentage
operating margin on turnover, the energy margin reduced from 9.4% to 5.4%.
The Group margin was also impacted by the faster growth of the IT
Distribution businesses which, while generating an excellent return on
capital employed (60.2% in the year), earn a lower operating margin compared
to the margin for the entire Group. The operating margin of the Group
excluding Energy and IT Distribution was similar to the previous year at 8.2%
(8.3%).
Discontinued Activities: The results of International Translation &
Publishing ('ITP') and DCC's share of the operating profit of Fyffes for
Fyffes' year to 31 October are shown in the profit and loss account under
'discontinued activities'. Turnover of discontinued activities amounted to
Euro 210.9 million (1999: Euro 212.0 million) and operating profit was Euro
4.0 million (1999: Euro 5.8 million).
The Group's return on tangible capital employed increased to 39.5% (1999:
36.3%) and inclusive of acquisition goodwill the return amounted to 21.5%
(1999: 21.2%).
The net interest charge increased to Euro 6.4 million from Euro 4.4 million
principally due to higher average levels of net debt in the earlier part of
the year. Interest cover was 12.1 times (1999: 14.3 times).
Profit before net exceptional gains, goodwill amortisation and tax increased
by 20.5% to Euro 71.3 million from Euro 59.2 million.
Net exceptional gains, principally comprising profits from the sale of the
Group's 10.3% ordinary shareholding in Fyffes plc and the Group's
unconditional contract to sell its 90% shareholding in ITP, amounted to Euro
71.4 million. In addition there was a related gain of Euro 20.7 million
through the realisation of goodwill previously eliminated against reserves.
Goodwill amortised amounted to Euro 3.5 million (1999: Euro 1.6 million).
Profit before tax increased by 141.3% to Euro 139.2 million from Euro 57.7
million.
The tax charge on ordinary activities of Euro 10.7 million represents an
effective tax rate of 15.0%, the same as the previous year. The total tax
charge for the year, including the tax on the exceptional gains, amounted to
Euro 18.7 million. After deducting minority interests of Euro 0.6 million
(1999: Euro 0.8 million), profit attributable to shareholders increased by
149.8% to Euro 119.8 million compared to Euro 48.0 million in 1999.
Basic adjusted earnings per share (i.e. excluding the effects of net
exceptional gains and goodwill amortisation) amounted to 68.8 cent compared
to 57.2 cent in 1999 - an increase of 20.3%. Basic earnings per share were
137.4 cent compared to 55.4 cent in 1999.
Dividend
The Directors recommend a final net dividend of 11.15 cent per share which,
when added to the interim dividend of 6.45 cent per share, gives a total
dividend of 17.60 cent per share for the year. This represents an increase of
20.1% on the dividend of 14.66 cent per share paid in respect of the previous
year.
The dividend for the year is covered 3.9 times by adjusted earnings per share
(1999: 3.9 times). The final dividend will be paid on 4 July 2000 to
shareholders on the register at the close of business on 26 May 2000.
Dividends payable by Irish companies no longer carry a tax credit. Dividend
withholding tax at 22% will be deducted from the final dividend payable to
Irish resident individual shareholders and all other shareholders who have
not lodged correctly completed exemption claim forms with the Company's
Registrars by 26 May.
Acquisitions, Capital Expenditure and Disposals
Acquisition and capital expenditure amounted to Euro 68.1 million.
Acquisition expenditure (inclusive of debt and net of cash assumed on
acquisition) amounted to Euro 39.1 million. The cash impact in the year was
Euro 29.1 million with an amount estimated at Euro 10.0 million deferred for
future payment. Acquisition activity during the year focused largely on the
expansion of the Group's IT and healthcare distribution businesses into
Continental Europe. In May 1999 DCC acquired Casa Garden (since renamed
CasaCare), a German based distributor of mobility and rehabilitation
products, for a consideration (inclusive of debt acquired) of Euro 6.0
million. In January 2000 DCC acquired Distrilogie, a young, fast growing
specialist distributor of computer storage products based in Paris with
offices in Madrid, Lisbon and Milan for an initial consideration (inclusive
of debt acquired) of Euro 17.3 million. Other acquisitions during the year
included Cawoods Oil in Northern Ireland and a number of small LPG
distributors in Britain. In addition the Group paid Euro 9.7 million, Euro
8.5 million in cash and Euro 1.2 million in DCC shares, in satisfaction of
deferred payment arrangements in respect of acquisitions made in previous
years; these amounts had been provided for at 31 March 1999.
Capital expenditure amounted to Euro 29.0 million (1999: Euro 18.0 million).
This included Euro 4.9 million spent on a new IT distribution centre in
Dublin. Depreciation amounted to Euro 18.9 million (1999: Euro 16.2 million).
In February 2000 DCC sold its holding of 31.2 million ordinary shares in
Fyffes plc for Euro 106.3 million and realised a profit on book value of Euro
76.0 million. DCC first invested in Fyffes in 1981 and the realisation of a
significant profit reflects well on the considerable achievements of Neil
McCann and his team in building Fyffes into the leading fresh produce
distributor in Europe. DCC continues to hold 4.6 million Fyffes convertible
preference shares. In March 2000 the Group contracted to sell its 90%
shareholding in ITP for a consideration (net of costs) of Euro 16.1 million
and realised a profit on book value of Euro 18.0 million.
Financial Strength
DCC is a highly cash generative group. Group operating cash flow increased by
47.0% to Euro 96.3 million (1999: Euro 65.5 million) with particularly
favourable circumstances at 31 March 2000 contributing to a reduction in
working capital despite turnover growth of 55.3%. After the sale of the
Group's ordinary shareholding in Fyffes plc for Euro 106.3 million in cash
and cash expenditure on acquisitions and development of Euro 62.3 million,
net cash at 31 March 2000 amounted to Euro 89.2 million, compared to net debt
of Euro 20.3 million at 31 March 1999. Shareholders' funds at 31 March 2000
amounted to Euro 329.1 million (1999: Euro 195.2 million).
E-Commerce
DCC is selectively deploying e-commerce within its marketing and distribution
business to effect service improvements and operational cost reductions and
to develop complementary sales channels. DCC recently launched a web-based
customer interface in Sharptext, its IT distribution business in Ireland,
which gives computer dealers and resellers customised on-line access to
product information, pricing and availability, promotions, order and account
status. The site automates many otherwise time consuming customer service
requirements such as account queries and returns. It has been developed as a
model for rolling out to other marketing and distribution operations within
the Group.
Within its supply chain management business, SerCom Solutions, DCC is
actively using the internet to communicate with its customers and suppliers
and to support its customers' own participation in e-commerce. An updated
website and new proprietary internet tools, 'e-vision' and 'e-file', launched
in September 1999, enable the leading international IT and telecoms customers
who have outsourced segments of their supply chain to SerCom Solutions to
have full, secure visibility of the progress of their orders throughout
SerCom Solutions' ERP system. E-commerce is also being used by SerCom
Solutions to undertake global fulfillment programmes for a key customer.
London Broker
Cazenove & Co. has been appointed London broker to DCC.
Outlook
DCC operates in growth markets and is immensely strong financially. It is
well positioned to go on delivering good growth in the years ahead.
Value Added Marketing and Distribution - IT (SerCom Distribution)
2000 1999
Turnover Euro 542.3 million Euro 354.6 million +52.9%
Operating Profit Euro 20.5 million Euro 15.0 million +36.6%
Operating Margin 3.8% 4.2%
Return on Capital Employed 60.2% 60.1%
SerCom Distribution continued to achieve excellent sales and profit growth in
hardware and software distribution in Britain and Ireland. The reduction in
operating margin reflects a change in business mix rather than any adverse
trend in product margins. With the acquisition of Distrilogie, SerCom
Distribution fulfilled its stated objective of expanding into Continental
Europe.
Micro-P, the British hardware distribution business, generated significant
growth across a broad range of product categories including pcs and
peripherals, networking products, components and consumables. Its business
approach has been consistently successful. Through its pro-active, product
focused telesales teams and efficient logistics and administration, Micro-P
delivers a superior service to both its customers and its leading brand
suppliers such as Canon, Epson, Fujitsu-Siemens, Phillips, Sony and Xerox.
During the year Micro-P received the 1999 Peripherals Distributor of the Year
award at the VNU Channel Group Awards.
Gem Distribution had a strong year across its business of consumer software
distribution and gained a particular benefit in the second half from its
appointment as distributor of Sega's 'Dreamcast' games console. Gem's
position as the leading British distributor of consumer software to the
retail trade was recognised in April 2000 when it was presented with the
Software Distributor of the Year award by the National Association of
Computer Retailers.
Since the year end SerCom Distribution has committed to expand its British
warehouse facility in Altham, near Manchester, which handles logistics for
Micro-P and Gem. This expansion, which will increase capacity to 2.5 times
the existing level, reflects the high levels of volume growth which are
anticipated in the future.
Sharptext, the Irish computer distributor, produced another good result in a
buoyant market. Its new distribution centre in west Dublin was completed on
schedule in December 1999 and Sharptext moved into the new premises over the
New Year. Sharptext has recently disposed of its small direct sales business
in order to concentrate exclusively on the rapid development of its
distribution activities. At the end of April 2000 Sharptext launched its new
e-commerce site - www.sharptext.com - which provides a full on-line
distribution system. The objectives of the development, which has been
carefully planned over the past 18 months, are to improve the quality of
service which Sharptext provides to its trade customers, to reduce
operational costs and to create a complementary sales channel. It is planned
to roll out similar sites based on the same model in the other SerCom
Distribution businesses later in the year.
In January 2000 DCC completed the acquisition of Distrilogie, a young, fast
growing specialist value added distributor of computer storage products based
in Paris. Distrilogie also has offices in Madrid, Lisbon and Milan. With
rapid growth forecast for the computer storage market, it is planned to grow
Distrilogie aggressively as a pan-European business in the internet
infrastructure market and to exploit geographic and product synergies with
SerCom Distribution's operations in Britain and Ireland.
Value Added Marketing and Distribution - Energy
2000 1999
Turnover Euro 369.8 million Euro 193.3 million +91.3%
Operating Profit Euro 20.0 million Euro 18.2 million +10.1%
Operating Margin 5.4% 9.4%
Return on Capital Employed 37.4% 32.5%
Creditable growth was achieved in Energy in a year in which the price of
crude oil and refined products increased significantly and continuously.
Turnover almost doubled due to strong growth in oil sales volumes and the
sales price increases implemented to recover the increased cost of oil and
liquefied petroleum gas (LPG). Operating profit grew by 10.1% as the strong
volume growth in oil more than compensated for reduced margins in LPG. While
the percentage operating margin fell back, this is a natural consequence of
substantial increases in oil prices and was accentuated by the rapid
expansion of the oil business which generates lower percentage margins but
higher rates of return on capital. Tight control of working capital and
capital expenditure ensured that DCC's energy businesses continued to be
highly cash generative.
DCC's oil distribution business serves end users directly in the major cities
and operates through distributors in more rural areas. In the Republic of
Ireland it is successfully developing a more substantial presence in the
faster growing transport fuels market. Oil volumes grew by 63%, benefiting
from strong growth in demand and an increased market share in distillates
together with a full year's contribution from the Burmah business in the
Republic of Ireland (acquired in January 1999) and eight months from the
Cawoods business in Northern Ireland (acquired in August 1999). Although
still trading under the Burmah and Cawoods brands in these markets alongside
the main Emo brand, the operations of both businesses have been fully
integrated with those of Emo, yielding the anticipated cost savings and
operating efficiencies, while continuing to grow volumes.
LPG volumes were slightly ahead of the previous year. A number of LPG price
increases were implemented during the financial year but, as is to be
expected at a time of rapidly and continuously increasing product costs,
sales price increases lagged product price increases throughout the year with
a consequent impact on LPG margins. Given more settled oil prices, LPG
margins should return to more normal levels in the current year.
Value Added Marketing and Distribution - Healthcare
2000 1999
Turnover Euro 155.6 million Euro 114.8 million +35.6%
Operating Profit Euro 16.0 million Euro 9.8 million +63.1%
Operating Margin 10.3% 8.5%
Return on Capital Employed 38.5% 31.8%
The 63.1% operating profit increase in Healthcare reflects strong organic
growth, an improvement in operating margins, the full year impact of
acquisitions completed in the previous year and the acquisition of CasaCare
in May 1999.
Fannin Healthcare, the hospital supply business, achieved substantial sales
and profit growth largely as a result of the BM Browne acquisition last year.
The enlarged business is using its market leadership position to add further
value to the service provided to its customers in the healthcare system
through bundled product offerings and more sophisticated IT applications.
In mobility and rehabilitation, good sales and profit growth resulted from
improved purchasing, increased market share in Britain and increased sales in
the German market following the acquisition of CasaCare.
In nutraceuticals (vitamins and health supplements), the successful
realisation of synergies from last year's acquisitions of Thompson & Capper
(tablet manufacture) and EuroCaps (soft gel encapsulation) has boosted sales
and profits significantly. Organic sales growth was strong and margins
benefited from sourcing tablets and capsules from these recently acquired
companies.
Value Added Marketing and Distribution - Food
2000* 1999*
Turnover Euro 160.4 million Euro 120.2 million +33.4%
Operating Profit Euro 8.9 million Euro 7.1 million +25.0%
Operating Margin 5.6% 5.9%
Return on Capital Employed 38.2% 37.6%
* continuing activities
DCC's consistent record of achieving strong organic growth in sales and
profit from its food businesses continued while there was also a first full
year contribution from Kylemore, its 50% associate acquired at the end of the
previous year.
In Ireland there is continuing growth in food service, convenience foods and
healthy / 'better for you' foods. As a leading supplier of branded products
in categories such as ground coffee, wine, snackfoods, breads/confectionery
and healthy foods, DCC's food businesses benefit from this growth.
Strong volume growth was achieved in all of the major product categories
noted above. In addition to its own Robt. Roberts ground coffee and Kelkin
healthy foods brands, some of the other popular brands distributed by DCC in
Ireland include KP and Phileas Fogg snackfoods, Jordan's cereals, Filippo
Berio olive oil and Torres wines. During the year DCC added Robinsons to the
existing range of soft beverages which includes Libby's and Tango.
Kylemore produced a satisfactory result, with the restaurants performing
well. With a strengthened management team now in place, the company is well
positioned for development. Allied Foods, the 50% owned specialist chilled
and frozen foods distributor, continued its evolution to a more logistics
focused business.
Supply Chain Management Services (SerCom Solutions)
2000* 1999*
Turnover Euro 61.6 million Euro 43.9 million +40.2%
Operating Profit Euro 3.8 million Euro 5.4 million -29.7%
Operating Margin 6.2% 12.4%
Return on Capital Employed 22.9% 36.3%
* continuing activities
SerCom Solutions grew its business strongly in a year characterised by
considerable development activity, which included the launch of its new
identity 'SerCom Solutions' and an expanded range of supply chain management
and e-fulfilment services. In order to focus its development on these
exciting growth areas, SerCom Solutions sold ITP, its localisation business.
The IT industry outsources certain business critical activities to a small
number of carefully selected partners in order to achieve cost efficient
distribution, shorter lead times to market and reduced inventory levels.
SerCom Solutions provides its customers in the IT industry with a range of
these supply chain management services including procurement, project
management, sub-assembly, warehousing, just-in-time delivery and e-commerce
solutions.
Recognising that IT is a key factor in successful provision of supply chain
management services, SerCom Solutions has continued to invest in additional
IT and customer service personnel and systems development, including a range
of e-commerce initiatives. The new IT investment is focused on electronically
linking the supply chain through the direct interface of SerCom Solutions' IT
systems with those of its customers, its customers' suppliers and its
customers' customers. While this investment is impacting profitability in the
short term, SerCom Solutions is positioning itself to win new business in the
rapidly developing market for supply chain management and e-fulfilment
services. The e-fulfilment projects undertaken to date, though modest in
scale, have been successful and provide a platform for SerCom Solutions to
grow its services in this area for a wider range of customers.
Other Interests
2000 1999
Turnover Euro 26.5 million Euro 20.5 million +29.3%
Operating Profit Euro 4.6 million Euro 2.4 million +93.6%
The Group's principal other interest is its 49% shareholding in Manor Park
Homebuilders. Manor Park had an excellent year. Its housing development at
Clare Hall, Malahide Road, was completed and work has started on an adjoining
apartment development. Sales and building operations are proceeding well at
sites at Passage West in Cork and in Drogheda. Planning permission has
recently been obtained for the first phase of a planned major residential
development at Manor Park's lands at Clonee in west Dublin, which form part
of a significant land bank for future development.
This announcement and further information on DCC is available on the
Company's website, www.dcc.ie
The Company's Annual General Meeting will be held at 11am on Monday 3 July
2000 in the Berkeley Court Hotel, Ballsbridge, Dublin 4.
DCC plc
SUMMARISED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2000
2000 1999
Notes Euro '000 Euro '000
Turnover - continuing activities 2 1,316,111 847,276
- discontinued activities 2 210,889 211,990
1,527,000 1,059,266
Operating profit - continuing activities 3 73,785 57,900
- discontinued activities 3 3,958 5,761
77,743 63,661
Net interest payable 3 (6,400) (4,439)
Profit on ordinary activities before net
exceptional gains, goodwill amortisation
and tax 3 71,343 59,222
Net exceptional gains 4 71,365 -
Goodwill amortisation 3 (3,535) (1,557)
Profit before tax 3 139,173 57,665
Taxation (18,701) (8,883)
Profit after tax 120,472 48,782
Minority interests (631) (802)
Profit attributable to DCC shareholders 119,841 47,980
Dividends 5 (15,366) (12,992)
Profit retained for the year 104,475 34,988
Earnings per ordinary share - basic 6 137.39c 55.39c
Adjusted earnings
per ordinary share - basic 6 68.80c 57.19c
Dividend per ordinary share 17.60c 14.66c
DCC plc
CONSOLIDATED BALANCE SHEET
as at 31 March 2000
2000 1999
Note Euro '000 Euro '000
Fixed Assets
Goodwill arising on the acquisition of
subsidiaries 75,559 46,028
Tangible fixed assets 123,094 106,697
Associated undertakings 34,598 56,844
233,251 209,569
Current Assets
Stocks 76,016 54,133
Debtors 232,301 150,924
Disposal proceeds receivable 16,100 -
Cash and term deposits 551,276 311,314
875,693 516,371
Creditors: Amounts falling due within one year
Trade and other creditors 266,133 163,081
Bank and other debt 191,781 41,759
Corporation tax 17,937 10,762
Proposed dividend 9,735 8,070
485,586 223,672
Net Current Assets 390,107 292,699
Total Assets less Current Liabilities 623,358 502,268
FINANCED BY:
Creditors: Amounts falling due after more
than one year
Unsecured Notes due 2008/11 108,611 97,557
Bank and other debt 161,725 192,295
Deferred acquisition consideration 17,569 9,868
287,905 299,720
Provisions for liabilities and charges 2,090 2,244
289,995 301,964
Capital and Reserves
Equity share capital and share premium 143,814 142,924
Reserves 185,309 52,297
Equity Shareholders' Funds 329,123 195,221
Minority interests 3,274 3,902
Capital grants 966 1,181
333,363 200,304
623,358 502,268
Net cash/(debt) 7 89,159 (20,297)
DCC plc
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the year ended 31 March 2000
2000 1999
Note Euro '000 Euro '000
Profit attributable to DCC shareholders 119,841 47,980
Dividends (15,366) (12,992)
104,475 34,988
Issues of equity share capital
net of capital duty 1,234 9,525
Movement on other reserves of associated
undertakings 2,492 (3,154)
Goodwill realised previously eliminated
against reserves 4 20,733 -
Exchange adjustments 4,968 (220)
Net movements in shareholders' funds 133,902 41,139
Opening shareholders' funds 195,221 154,082
Closing shareholders' funds 329,123 195,221
DCC plc
CASH FLOW
for the year ended 31 March 2000
2000 1999
Note Euro '000 Euro '000
Inflows
Operating cash flow (see below) 96,297 65,530
Disposals 109,745 -
Shares issues (net) 9 8,656
206,051 74,186
Outflows
Capital expenditure (net) 24,736 16,816
Acquisitions 37,575 59,124
Interest paid 5,549 4,080
Tax paid 9,400 5,768
Dividends paid 13,701 10,527
Other 86 7,879
91,047 104,194
Net cash inflow/(outflow) 115,004 (30,008)
Translation adjustment (5,548) 2,677
Movement in net cash/(debt) 109,456 (27,331)
Opening net (debt)/ cash (20,297) 7,034
Closing net cash/(debt) 7 89,159 (20,297)
OPERATING CASH FLOW
for the year ended 31 March 2000
2000 1999
Euro '000 Euro '000
Group operating profit 77,743 63,661
Operating profit of associated undertakings (15,879) (12,129)
Dividends received from associated undertakings 2,768 2,268
Depreciation of tangible fixed assets 18,890 16,176
Decrease/(increase) in working capital 15,823 (3,352)
Other (3,048) (1,094)
Operating Cash Flow 96,297 65,530
DCC plc
Notes to the Preliminary Results for the Year ended 31 March 2000
1. Basis of Preparation
The financial information set out herein does not represent full accounts and
has been abridged from the financial statements of DCC plc for the year ended
31 March 2000 which carry an unqualified auditors' report and which have not
yet been filed with the Registrar of Companies. Full accounts for the year
ended 31 March 1999, containing an unqualified auditors' report, have been
delivered to the Registrar of Companies.
The financial statements for the year ended 31 March 2000 have been prepared
in accordance with the accounting policies set out in the financial
statements for the year ended 31 March 1999.
Comparative amounts have been regrouped and restated, where necessary, on the
same basis as the amounts for the current year.
The Group's financial statements are prepared in Euros denoted by the symbol
Euro . The exchange rates used in translating sterling balance sheet and
profit and loss account amounts were as follows:-
Year ended Year ended
31 March 2000 31 March 1999
Euro 1=Stg£ Euro 1=Stg£
Balance sheet (closing rate) 0.599 0.666
Profit and loss (average rate) 0.643 0.681
2. Turnover
2000 1999
Subsidiary Associated Subsidiary Associated
U'takings U'takings Total U'takings U'takings Total
Eur'000 Eur'000 Eur'000 Eur'000 Eur'000 Eur'000
IT 541,649 649 542,298 354,613 - 354,613
Energy 369,812 - 369,812 193,305 - 193,305
Healthcare 140,427 15,128 155,555 103,256 11,503 114,759
Food 90,319 70,053 160,372 79,071 41,119 120,190
Value
Added
Marketing
and
Distrib. 1,142,207 85,830 1,228,037 730,245 52,622 782,867
Supply
Chain
Mgt.
Services 61,551 - 61,551 43,899 - 43,899
Other
Interests - 26,523 26,523 - 20,510 20,510
Continuing
activ. 1,203,758 112,353 1,316,111 774,144 73,132 847,276
Discont.
activities 16,480 194,409 210,889 17,562 194,428 211,990
1,220,238 306,762 1,527,000 791,706 267,560 1,059,266
Of which acquisitions
in the year contributed 49,547 42,531
3. Profit before Tax
2000 1999
Subsidiary Associated Subsidiary Associated
U'takings U'takings Total U'takings U'takings Total
Eur'000 Eur'000 Eur'000 Eur'000 Eur'000 Eur'000
IT 20,430 28 20,458 14,975 - 14,975
Energy 20,053 - 20,053 18,213 - 18,213
Healthcare 14,880 1,071 15,951 9,085 695 9,780
Food 7,081 1,835 8,916 5,950 1,185 7,135
Value
Added
Marketing
and
Distrib. 62,444 2,934 65,378 48,223 1,880 50,103
Supply
Chain
Mgt.
Services 3,812 - 3,812 5,424 - 5,424
Other
Interests - 4,595 4,595 - 2,373 2,373
Operating
profit
- cont.
activit.* 66,256 7,529 73,785 53,647 4,253 57,900
Discontinued
activities (4,392) 8,350 3,958 (2,115) 7,876 5,761
Operating
profit 61,864 15,879 77,743 51,532 12,129 63,661
Net
interest
payable (6,132) (268) (6,400) (4,364) (75) (4,439)
Profit
before
net except.
gains &
goodwill
amort. 55,732 15,611 71,343 47,168 12,054 59,222
Net except.
gains
(note 4) 10,365 61,000 71,365 - - -
Goodwill
amort. (2,710) (825) (3,535) (830) (727) (1,557)
Profit
before
tax 63,387 75,786 139,173 46,338 11,327 57,665
* Of which acquisitions
in the year contributed 598 3,512
4. Net Exceptional Gains
Year ended
31 March
2000
Euro '000
Profit on sale of associated undertaking 76,000
Profit on sale of subsidiary net tangible assets 18,000
Other (1,902)
92,098
Goodwill previously eliminated against reserves (20,733)
Net exceptional gains 71,365
Taxation (8,000)
In February 2000 the Group sold its holding of ordinary shares in its
associated undertaking, Fyffes plc. The Group still holds 4,621,901
convertible preference shares in Fyffes plc.
In March 2000 the Group unconditionally contracted to sell its 90% interest
in International Translation and Publishing Limited, the consideration for
which is receivable in cash on 16 May 2000.
5. Dividends
Year ended Year ended
31 March 31 March
2000 1999
Euro '000 Euro '000
Interim dividend of 6.450 cent per share
(1999: 5.396 cent) 5,631 4,698
Proposed final dividend of 11.150 cent per share
(1999: second interim dividend of 9.264 cent) 9,735 8,070
Additional dividend - 224
15,366 12,992
6. Earnings per Ordinary Share
Year ended Year ended
31 March 31 March
2000 1999
Euro '000 Euro '000
Profit after tax and minority interests 119,841 47,980
Net exceptional gains (net of taxation) (63,365) -
Goodwill amortisation 3,535 1,557
Adjusted profit after tax and minority interests 60,011 49,537
Basic earnings per ordinary share
Basic earnings per ordinary share 137.39c 55.39c
Adjusted basic earnings per ordinary share* 68.80c 57.19c
Weighted average number of ordinary shares
in issue during the year ('000) 87,225 86,621
Fully diluted earnings per ordinary share
Fully diluted earnings per ordinary share 133.43c 54.32c
Adjusted fully diluted earnings per ordinary share* 66.89c 56.08c
Fully diluted weighted average number of ordinary
shares for the year ('000) 89,925 88,504
* adjusted to exclude goodwill amortisation and net exceptional gains
The fully diluted earnings used in the calculation of fully diluted earnings
per ordinary share were Euro 119,989,000 (1999: Euro 48,079,000) and in the
calculation of adjusted fully diluted earnings per ordinary share were
Euro 60,159,000 (1999: Euro 49,636,000).
7. Analysis of Net Cash/(Debt)
31 March 31 March
2000 1999
Euro '000 Euro '000
Cash and term deposits 551,276 311,314
Bank and other debt repayable
within one year (191,781) (41,759)
Bank and other debt repayable
after more than one year (161,725) (192,295)
Unsecured notes due 2008/11 (108,611) (97,557)
Net cash/(debt) 89,159 (20,297)
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